Meaning: A bill is a written document sent by a creditor to his debtor, stating an unconditional order to pay the certain amount in specified time, according to his order or to the holder of the document.
Definition: A bill is an instrument in writing containing an unconditional order signed by the drawer of the bill, directing to pay a certain sum of money only, at the specified time to a certain person or according to his order or to the holder of the document.
Characteristics of bill :
- The bill must be in writing.
- In a bill, the writing must be in order but not in a request form.
- An order made in the bill should be unconditional.
- In this order, it is mentioned to pay certain amount to a certain person or according to his order or to the holder of the bill.
- In a bill, the signature of the drawer of a bill is the must.
- The prescribed amount of revenue stamp (not postal stamp) must be affixed on the bill.
- The bill becomes operative only after it is accepted by the acceptor of a bill.
- The bill is drawn by a person addressing it to the other person. Means, there must be three parties – the drawer, the acceptor and the receiver of money (payee).
- The holder of the bill will be paid the amount at the end of certain period.
- The duration/period of the bill must be definite.
- The date of writing the bill must be definite.
- The amount shown in the bill must be clear and definite. The amount is shown both in figures and words.
